Why Silver Hill: We anticipate potential roadblocks and proactively problem-solve Location: Detroit, MI Property Type: Multifamily, 22 unit Challenge: Building showed some vacancy, other lenders passed on it Solution: Renegotiate the price of the property
Anticipating the roadblocks a deal might encounter from the onset of the transaction is one of the many ways in which Silver Hill helps mortgage professionals manage the borrower’s expectations. While other banks and lenders passed on this typical multifamily deal, we recognized from the beginning that a solid DSCR (debt-service coverage ratio) made this property appealing despite the actual valuation. The property was stated at $678,000, but the appraisal returned a value of $590,000. We knew how to manage the expectations associated with the loan. Silver Hill worked with the broker and borrower to renegotiate the sale price of the property. Because we prepared for possible challenges, our sales team closed the loan smoothly, even moving the deal from an individual name to a newly formed LLC at the last moment.
The customer was an experienced residential mortgage broker who had closed very few commercial deals. He said that if not for our hard work as a company and ability to pivot when the deal started looking sour, he would never have closed this loan. Even the borrower expressed his gratitude for our team’s desire to get this deal done and for providing information to help him renegotiate at the end.
